Search Legislation

The Occupational Pension Schemes (Member-nominated Trustees and Directors) Regulations (Northern Ireland) 2006

What Version

 Help about what version
  • Latest available (Revised)
  • Original (As made)

Status:

This is the original version (as it was originally made). This item of legislation is currently only available in its original format.

Citation, commencement and interpretation

1.—(1) These Regulations may be cited as the Occupational Pension Schemes (Member-nominated Trustees and Directors) Regulations (Northern Ireland) 2006 and shall come into operation on 6th April 2006, immediately prior to the coming into operation of the provisions of Article 2(6) of, and Part 6 of the Schedule to, the Pensions (2005 Order) (Commencement No. 7) Order (Northern Ireland) 2005(1).

(2) In these Regulations—

“associated” shall be construed in accordance with paragraph (4);

“connected” shall be construed in accordance with paragraph (4);

“direct payment paid-up insurance scheme” means a scheme under which—

(a)

no further contributions are payable;

(b)

the benefits that may be provided in respect of an individual are determined by reference to the value of the whole or a specified part of the rights under a contract of insurance, and

(c)

the benefits in respect of any member are, in accordance with an agreement made between the insurer and the trustees of the scheme (or a subsequent agreement made with any person for the provision of those benefits in respect of the member, by that person), to be paid by the insurer (or that person) directly to the member or to a person entitled to benefits in respect of that member;

“former old code scheme” means a registered pension scheme which was formerly approved under section 208 of the Income and Corporation Taxes Act 1970(2) (approved superannuation funds) and under the provisions of which—

(a)

no further contributions are payable, and

(b)

the entitlement in respect of each member is to a benefit consisting of a specified fixed amount which may not be altered unless—

(i)

the member retires otherwise than at his normal pension age, or

(ii)

another person becomes entitled to a benefit in respect of him;

“independently selected” in relation to a trustee of a scheme or a director of a company which is a trustee of a scheme, means selected as a trustee (or, as the case may be, a director)—

(a)

by some or all of the members of the scheme (otherwise than wholly or mainly by members who are directors of companies which are employers in relation to the scheme), or

(b)

by an organisation which represents some or all of the members of the scheme (other than wholly or mainly members who are such directors);

“insurer” (subject to paragraph (5)) means—

(a)

a person who has permission under Part IV of the Financial Services and Markets Act 2000(3) (permission to carry on regulated activities) to effect or carry out contracts of long-term insurance, or

(b)

an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act (EEA passport rights), which has permission under paragraph 15 of that Schedule (grant of permission) (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of long-term insurance;

“registered pension scheme” has the meaning given in section 150(2) of the Finance Act 2004(4) (meaning of “pension scheme”);

“relevant centralised scheme” means a scheme in which—

(a)

membership is open to employees of more than one employer under a single scheme;

(b)

at least two of the employers are not associated or connected, and

(c)

in the case of a scheme which has one or more trustees and in which each trustee is a company—

(i)

the scheme rules do not provide that the power to appoint or remove all the directors is exercisable solely by one employer, and

(ii)

at least one-third of the directors of the company or each of those companies are independent or independently selected, or

(d)

in the case of a scheme where at least one of the trustees is not a company, either—

(i)

the scheme rules do not provide that the power to appoint or remove all the trustees is exercisable solely by one employer, or

(ii)

at least one-third of the trustees are persons who—

(aa)

have no legal or beneficial interest in the assets of any of the employers or of the scheme (otherwise than as trustees) and are neither connected nor associated with any of the employers, and

(bb)

have been independently selected;

“relevant executive pension scheme” means a scheme—

(a)

in relation to which the company is the only employer and the sole trustee, and

(b)

the members of which are either current or former directors of the company and which includes at least one-third of the current directors;

“relevant small occupational pension scheme” means—

(a)

a scheme with fewer than 12 members, where all the members are trustees of the scheme, and either—

(i)

the scheme rules provide that all decisions are made only by the trustees who are members of the schemes, by unanimous agreement, or

(ii)

the scheme has an independent trustee who is independent in relation to the scheme for the purposes of Article 23 of the 1995 Order(5) (power to appoint independent trustees) and is registered in the register maintained by the Regulator in accordance with regulations made under paragraph (4) of that Article, or

(b)

a scheme with fewer than 12 members where all the members are directors of a company which is the sole trustee of the scheme and either—

(i)

the scheme rules provide that all decisions are made only by the members of the scheme by unanimous agreement, or

(ii)

one of the directors of the company is independent in relation to the scheme for the purposes of Article 23 of the 1995 Order and is registered in the register maintained by the Regulator in accordance with regulations made under paragraph (4) of that Article;

“relevant wholly insured scheme” means a scheme under which there is a sole trustee and all the benefits are secured by contracts of insurance or annuity contracts, some or all of which are with an insurer who—

(a)

is, or is connected, with the sole trustee of the scheme, but

(b)

is not, and is not connected with, the employer;

“section 615(6) scheme” means a scheme with such a superannuation fund as is mentioned in section 615(6) of the Income and Corporation Taxes Act 1988(6) (exemption from tax in respect of certain pensions);

“small insured scheme” means a scheme—

(a)

with fewer than 12 members, and

(b)

in which all the scheme benefits are secured with an insurer under a contract of insurance or annuity contract.

(3) For the purposes of paragraph (2), a director is independent in relation to a scheme only if he—

(a)has no direct legal or beneficial interest in the assets of any of the employers or of the scheme, and

(b)is neither connected nor associated with any of the employers.

(4) For the purposes of these Regulations Articles 4 and 7 of the Insolvency Order(7) (associated and connected persons) shall apply as they apply for the purposes of that Order.

(5) The definition of insurer in paragraph (2) shall be read with—

(a)section 22 of the Financial Services and Markets Act 2000 (the classes of activity and categories of investment), and

(b)any relevant order under that section, or

(c)Schedule 2 to that Act (regulated activities).

(6) References to “employer” and “employers” in paragraphs (c)(i) and (d) of the definition in paragraph (2) of “relevant centralised scheme” and in paragraph (3) do not include companies which carry on the business of acting as trustee of, or providing administrative services to, the scheme and no other business.

(7) In these Regulations, any reference to a numbered Article is a reference to the Article of the Pensions (Northern Ireland) Order 2005 bearing that number.

(1)

S.R. 2005 No. 543 (C. 37); Articles 16 to 18, 20 and 21 of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) were amended by paragraphs 34 and 38 of Schedule 9 to the Welfare Reform and Pensions (Northern Ireland) Order 1999 (S.I. 1999/3147 (N.I. 11)), respectively. Articles 16 to 21 of the Pensions (Northern Ireland) Order 1995 are repealed by Schedule 11 to the Pensions (Northern Ireland) Order 2005 with effect from 6th April 2006

(2)

1970 c. 10; section 208 was repealed by Schedule 14 to the Finance Act 1971 (c. 68) with effect from 6th April 1980

(5)

Article 23 was substituted by Article 32(3) of the Pensions (Northern Ireland) Order 2005

(6)

1988 c. 1; section 615(6) was amended by paragraph 11 of Schedule 10 to the Finance Act 1999 (c. 16)

(7)

Article 4 was amended by paragraph 80 of Schedule 29 to the Civil Partnership Act 2004 (c. 33)

Back to top

Options/Help

Print Options

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made):The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as made version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources